How would you calculate cost of goods sold? What items make upcost of goods sold? How does beginning and ending inventory affectcost of goods sold? What are the journal entries a merchandisingorganization would use to record the purchase and subsequent saleof merchandise? How would these transactions differ with a periodicversus a perpetual inventory system? Why are perpetual inventorysystems so much more popular today than back in the early 1960s andearlier? Why would a company employing a perpetual inventory systemstill take a physical inventory periodically?